Archive for 'System D'

Barter emerges in Greece as partial solution to economic troubles

The following is a good story about the value of barter. I recommend downloading our Barter Tycoon Report from the Members Area so you can learn how to do it successfully. My favorite quote from this article is this:

“You are not poor when you have no money,” she said, “you are poor when you have nothing to offer – except for the elderly and the sick, to whom we should all be offering.”

You see, money is simply a way to trade what you have for what you want. When you have time, energy, talents and the fruits of your labor and creativity you then have something of value that you can trade with. Money is just a lubricant. Creative barter can be just as good.

Here is the article:

Greece on the breadline: cashless currency takes off

A determination to ‘move beyond anger to creativity’ is driving a strong barter economy in some places

In recent weeks, Theodoros Mavridis has bought fresh eggs, tsipourou (the local brandy: beware), fruit, olives, olive oil, jam, and soap. He has also had some legal advice, and enjoyed the services of an accountant to help fill in his tax return.

None of it has cost him a euro, because he had previously done a spot of electrical work – repairing a TV, sorting out a dodgy light – for some of the 800-odd members of a fast-growing exchange network in the port town of Volos, midway between Athens and Thessaloniki.

In return for his expert labour, Mavridis received a number of Local Alternative Units (known as tems in Greek) in his online network account. In return for the eggs, olive oil, tax advice and the rest, he transferred tems into other people’s accounts.

“It’s an easier, more direct way of exchanging goods and services,” said Bernhardt Koppold, a German-born homeopathist and acupuncturist in Volos who is an active member of the network. “It’s also a way of showing practical solidarity – of building relationships.”

He had just treated Maria McCarthy, an English teacher who has lived and worked in the town for 20 years. The consultation was her first tem transaction, and she used one of the vouchers available for people who haven’t yet, or can’t, set up an online account.

“I already exchange directly with a couple of families, mainly English teaching for babysitting, and this is a great way to extend that,” said McCarthy. “This is still young, but it’s growing very quickly. Plainly, the more you use it the more useful to you it gets.” Continue reading…

Americans Will Need ‘Black Markets’ To Survive

From LewRockwell:

As Americans, we live in two worlds; the world of mainstream fantasy, and the world of day-to-day reality right outside our front doors. One disappears the moment we shut off our television. The other, does not…

When dealing with the economy, it is the foundation blocks that remain when the proverbial house of cards flutters away in the wind, and these basic roots are what we should be most concerned about. While much of what we see in terms of economic news is awash in a sticky gray cloud of disinformation and uneducated opinion, there are still certain constants that we can always rely on to give us a sense of our general financial environment. Two of these constants are supply and demand. Central banks like the private Federal Reserve may have the ability to flood markets with fiat liquidity to skew indexes and stocks, and our government certainly has the ability to interpret employment numbers in such a way as to paint the rosiest picture possible, but ultimately, these entities cannot artificially manipulate the public into a state of demand when they are, for all intents and purposes, dead broke.

In contrast, the establishment does have the ability to make specific demands or necessities illegal to possess, and can even attempt to restrict their supply. Though, in most cases this leads not to the control they seek, but a sudden and sharp loss of regulation through the growth of covert trade. The people need what the people need, and no government, no matter how titanic, can stop them from getting these commodities when demand is strong enough.

This process of removing necessary or desirable items from a trade environment leads inevitably to counter-prohibition often in the form of strict cash transactions, barter markets, or “black markets” as they are normally derided by those in power. The problem for economic totalitarians is that the harder they squeeze the masses, the more intricate the rebellion becomes, especially when all they want is to participate in free markets the way our forefathers intended.

The so called “drug war” is proof positive of the impossibility of locking down a product, especially one that has no moral bearing on the people who are involved in its use. Only when a considerable majority of a populace can be convinced of the inherent immoral nature of an illicit item can its trade finally be squelched. During any attempt to outlaw a form of commerce, a steady stream of informants convinced of their service to the “greater good” is required for success. Dishonorable governments, therefore, do not usually engage in direct confrontation with black markets. Instead, they seek to encourage the public to view trade outside mainstream legal standards as “taboo”. They must condition us to react with guilt or misplaced righteousness in the face of black market activity, and associate its conduct as dangerous and destructive to the community, turning citizens into an appendage of the bureaucratic eye.

But, what happens when black markets, due to calamity, become a pillar of survival for a society? What happens when the mainstream economy no longer meets the available demand? What happens when this condition has been deliberately engineered by the power structure to hasten cultural desperation and dependence?

In this event, black markets not only sustain a nation through times of weakness, but they also become a form of revolution; a method for fighting back against the centralization of oppressive oligarchies and diminishing their ability to bottleneck important resources. Black markets are a means of fighting back, and are as important as any weapon in the battle for liberty. Here are just a few reasons why such organizational actions may be required in the near future…  continue reading…

Jon Matonis and “Brain-banking”

Profound implications for individual privacy and freedom:

From quora:

Jon Matonis, e-Money specialist

Brain Banking (or true mobile banking) – I’m not exactly sure where this one is leading us, but BrainWallet, the concept of individually storing bitcoin in one’s own mind by memorization of a passphrase https://en.bitcoin.it/wiki/Brain… was not possible with traditional centralized currencies. Presumably, if the corresponding public key is used as your primary receiving address, then you are walking around daily with access to everything that has been assigned to you on the block chain.

Now, combine that usage scenario with the $10 trillion plus annual shadow economy and you have just facilitated a parallel economy that doesn’t require financial institutions and doesn’t even require physical currencies.  You automatically receive new deposits into your brain; however, you have to locate a cafe computer or Android smartphone to spend them.

The Continued Assault On Financial Privacy And The Need For Better Money

The following recent news articles illustrate the ongoing assault on financial privacy. This explains some of the reasons behind the drive for free-market currency alternatives like bitcoin:

Why 308,127,404 Americans Are Going To Get Hosed

Cash-sniffing dog comes through at Philadelphia airport

Curbing money laundering in Ghana: Financial firms to monitor employee’s bank accounts

Tanzania: War On ‘Dirty Money’ Intensified

Activist discusses effects of halting money transfer services

California targets underground economy

Bitcoin: A New Commodity Created To Serve Market Demand

The Black Market Always Wins… Even in Communist China

November 18th, 2011

Imagine you’re a 26 year old high-school dropout working as a factory grunt for a measly $100 a month. And that’s 2010 dollars, not some distant past when that was worth something. You’d probably be pumping your fist against the bourgeoisie in your Che Guevara T-shirt down at Occupy Wall Street right now. But what if you knew that just 6 years later, if you played your cards right, you’d be managing your own factory employing more that 100 people? And what if this wasn’t some economic miracle, but it was a normal occurrence for enterprising young entrepreneurs? Wouldn’t you want to know how it was possible? Well the answer is the black market.

See, that’s a true story. It happened to Cai Shuxian, and it happens to many entrepreneurs in Wenzhou, China where every road eventually leads back to the company that built it. The saying goes among the Wenzhounese, “the mountains are high and the emperor is far away” because for the past 30 years private citizens have virtually nullified government central planning simply by ignoring it, and the government just doesn’t have the resources to crack down. Private firms now build roads, bridges, highways, and even airports to bring their goods to market, and even though it’s not always pretty it is crudely efficient. There’s still a taxation bureaucracy, but tax evasion is typical, even routine. The primary role of local government has been to protect the city from higher levels of government.

When state-run banks became averse to lending to small private enterprise citizens of Wenzhou developed an underground financial system of their own. So called, “gray-market” lending, though technically illegal, is used by nearly 90% of individuals and 60% of companies according to official figures from the People’s Bank of China (China’s central bank). Non-bank lending of venture capital has been the single most important development to the economic success of Wenzhou, and that combined with a blasé disregard for regulatory laws has produced a business environment that borders on market anarchism.

Continue reading…

Interview of J. Neil Schulman – author of Alongside Night

Listen to this recorded interview with J. Neil Schulman, author of Alongside Night the “must read” novel
for anyone who cares about freedom and wishes to survive the coming economic collapse:

.mp3 file:

http://tinyurl.com/7ma7z9n

.wav file:

http://tinyurl.com/7ma7z9n

Here are a few notable quotes of praise for Alongside Night:

“An absorbing novel–science fiction, yet also a cautionary tale
with a disturbing resemblance to past history and future
possibilities.”
– Milton Friedman, Nobel laureate in Economics

“I received Alongside Night at noon today. It is now eight in the
evening and I just finished it. I think I am entitled to some
dinner now as I had no lunch. The unputdownability of the book
ensured that. It is a remarkable and original story, and the
picture it presents of an inflation- crippled America on the
verge of revolution is all too acceptable. I wish, and so will
many novelists, that I, or they, had thought of the idea first. A
thrilling novel, crisply written, that fires the imagination as
effectively as it stimulates the feelings.”
–Anthony Burgess

“Alongside Night is terribly accurate. Whenever the American
crack-up boom happens, few libertarians would disagree with his
outline of the scenarios. But Neil went one step farther than
most of the libertarians of the time. He integrated the new
science of countereconomics and the economic philosophy of
Agorism, which I had only begun to develop in 1974…. When? You
decide, dear reader; but you are now well armed to see the signs
and know what actions to take. Thanks to Ludwig von Mises, a
small band of rational revolutionary students, and J. Neil
Schulman, artist.”
–Samuel Edward Konkin III

“One of the most widely hailed libertarian novels since the
classic works of Ayn Rand.”
–Reason Magazine

Download your FREE copy at:

http://www.AlongsideNight.com

For information on the movie project:

http://www.AlongsideNightMovie.com